Unearthing China's golden dreams

Jinshan Gold Mines' Chang Shan Hao mine (CSH 217), one of the largest of its kind in China, began production last summer.

According to pre-production feasibility studies, CSH 217 is capable of generating about 117,000 ounces of gold every year and will have an initial life span of around nine years. The mine has boosted Jinshan's position in the world's second largest gold-producing company.

"We are 100 percent gold and 100 percent China, which is a unique position to be in," said President Jay Chmelauskas, whose extensive experience in the sector included overseeing one of the largest remote gold mines in the Asia-Pacific region.

"We are committed to China in the long term because we believe in the mutual benefits available for our company, our joint venture partners and surrounding communities," he said.

According to Chmelauskas, Jinshan is also conducting an expansion feasibility study with a 5,000-m drill program.

The study itself is focused on CSH 217's southwest mineralization zone and targets zones where the current resource remains open.

In addition to the development of the CSH 217 mine, Jinshan is currently drilling the Dadiangou Gold Project in Southwest China's Gansu Province and is conducting regional exploration in the prolific Tianshan mineral belt in the Xinjiang Uygur Autonomous Region in Northwest China.

The drilling license for Jinshan's Dadiangou Gold Project, which covers around 15 sq km, is owned by the Northwest Industrial Nuclear Economic Technical Corporation. The agreement gives Jinshan an 80 percent interest in the project.

Jinshan also hopes to uncover new gold reserves in the Tianshan Gold Belt, which extends through Central Asia from Uzbekistan to Mongolia and China's Inner Mongolia.

This region has many world-class copper and gold mines and is home to Ivanhoe Mines Oyu Tolgoi copper-gold discovery.

Through well-established joint-venture partnerships, operating experience and a strong presence in China, Jinshan is committed to building a significant gold company and enhancing shareholder value.

www.jinshanmines.com

(China Daily 11/13/2007 page28)